Washington Technology Center addresses lack of seed capital in Washington State

The Washington Technology Center (WTC) announces a new program targeted to provide companies outside the Puget Sound access to critical early stage “seed capital.”

Under the $250,000 award from the U.S. Department of Commerce Economic Development Administration and matched by WTC, this two-year program will help investors and companies in communities like Yakima, Spokane, Tri-Cities, Bellingham, Port Angeles, Wenatchee, and Vancouver gain access to seed capital—the next stage of company financing beyond family and friends.

“This will be a way to help regions across Washington State develop local new businesses and jobs that can help sustain and grow these communities,” said Lee Cheatham, executive director of WTC. “This work builds upon other WTC activities—such as helping companies win federal R&D contracts, creating access to working capital, and funding R&D at Washington’s universities—that will ensure future economic growth continues across the state.”

Findings from WTC-led statewide focus groups as well as the 2003 Index of Innovation and Technology for Washington State, published annually by WTC, indicate that this stage of financing is lacking outside Seattle. WTC has partnered with the Alliance of Angels to run “Eye of the Investor” workshops in Spokane, the Tri-Cities and Bellingham—which also supported the conclusion that access to seed capital is a major issue in these other communities.

The development of new businesses and job opportunities are severely hindered without access to this level of working capital. While there are several organizations in Seattle to help budding entrepreneurs gain access to individual investors, or “angel investors,” no organization exists in Washington that brings smaller communities together to meet this need.

Two activities will be the core of this program. Modeled on the OCAST Technology Business Finance program in Oklahoma, WTC will work with local community development officials to create and connect area investor groups, thus maximizing and enhancing a deal flow across the state. The second activity is to prepare companies for securing investment. WTC will provide business services—such as assistance developing business plans and preparing investor presentations—to strengthen a company’s chances of success.

About the Washington Technology Center

The Washington Technology Center is Washington’s statewide science and technology organization committed to accelerating the innovation-based economy. WTC stimulates job growth in Washington’s companies by helping develop commercially viable technology. Since 1995, over 200 Washington companies working with WTC have secured $280 million in outside financing or federal contracts. More than half the companies receiving WTC funding have had fewer than 100 employees. WTC also manages a Microfabrication Laboratory, a nationally recognized facility for research, technology development, and prototype manufacturing. http://www.watechcenter.org

Contact:

Ellen Barker,

206-543-7994,

[email protected]